information to answer question 5. Cash R10 000Accounts receivable(debtors control)R30 000InventoryR80 000Prepaid insurance R 6 000Fixed assetsR200 000 Accounts payable (creditors control)R30 000 Income received in advanceR25 000 Wages payablesR5 000 Long-term liabilities R70 000 CapitalR196 000 Calculate the acid test ratio. A.0.83:1 B.1:1 C.1.3:1 D.0.76:1

The acid test ratio is also known by the name of quick ratio. It helps to measure the companies…

Answered: information to answer question 5.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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information to answer question 5.

Cash	R10 000
Accounts receivable(debtors control)	R30 000
Inventory	R80 000
Prepaid insurance	R 6 000
Fixed assets	R200 000
Accounts payable (creditors control)	R30 000
Income received in advance	R25 000
Wages payables	R5 000
Long-term liabilities	R70 000
Capital	R196 000

Calculate the acid test ratio.

0.83:1

1:1

1.3:1

0.76:1

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